The property has to be able to generate a positive cash flow (breakeven at worst) after fixing it up. Buy with the idea of holding it for a minimum of 6 months, and these costs have to be calculated into the purchase price. I have developed an analysis spreadsheet to address all of these cost. it does mean that as an investor you will only be able to buy successfully about 1% of the properties you consider.
DS Lunsford of DS Lunsford & Associates
I can be reached at email@example.com
Jun 9, 2010